Trump repeats call for Fed rate cut, attacks Powell over $3 billion building renovation

Trump added that the US economy was performing strongly despite what he called Powell’s missteps. “Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board,” he said.

Trump on lawsuit against Jerome Powell

The president said he was considering “allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.”

Trump claimed the project cost $3 billion, compared with what he said should have been a $50 million refurbishment. “Not good!” he wrote.

NBC News reports that the Fed declined to comment on Trump’s post. Powell and the Fed have previously defended the ongoing renovations, saying costs have increased over time for specific reasons.

Last month, during Trump’s visit to the construction site, Powell responded directly to the president’s claim that the work had cost more than $3.1 billion. “I haven’t heard that from anybody,” Powell said, according to NBC News.

Trump vs Powell

Trump has been publicly pressuring the Fed for months to sharply reduce interest rates, claiming this would save the US large sums and ease debt burdens.

After raising rates in 2022 following the Covid-19 pandemic, the Fed cut them several times in 2024, the last full year of Joe Biden’s presidency. Rates have remained unchanged so far in 2025 despite Trump’s calls for faster reductions. Powell told Congress in July that the Fed might have eased policy this year if not for Trump’s tariff measures.

According to NBC News, Fed officials had earlier signalled they expected two rate cuts in total this year. Traders now see a quarter-point cut after the Federal Open Market Committee’s September meeting, with growing expectations for further cuts in October and December.

Trump, who has repeatedly criticised Powell over monetary policy and other issues, has made lowering the Fed’s benchmark rate a key demand.